3 days ago
An Expected Decline in the Prices of Imported Used Cars
The market for new and used cars imported from abroad is experiencing an intense anticipation, awaiting the implementation of a new mechanism for calculating customs duties by Algerian customs authorities.
This mechanism relies on the adoption of purchase invoices from the importing country rather than European reference prices. This measure is likely to cause an 'aftershock' in prices, according to observers and experts in the field.
As is well known, the General Directorate of Customs adopted a price reference list for European cars and those originating from outside Europe, such as China. This will be the basis for calculating customs duties applied to both new and used imported vehicles, due to the presence of similar models from European brands manufactured in China, which naturally entail significant price differences.
Observers confirm that the new measure will automatically significantly reduce customs duties imposed on imported cars, especially those from China, whose prices are significantly lower than their European counterparts. This will open the door to a significant decline in the prices of these vehicles in the Algerian market and provide citizens with a greater opportunity to purchase cars at reasonable prices.
In this context, automotive journalist Nabil Meghiref believes that while the new measures are pending confirmation and actual implementation, they are good news for Algerian citizens intending to purchase a new or used car.
Nabil told Echorouk that the new measure allows for a review of the effects of customs duties on cars imported from all countries around the world. However, the real benefits accrue to cars coming from China, given their very low prices compared to their European counterparts, despite bearing the same international brands.
Meghrif explained that most international companies have factories in China that produce the same models intended for the European market, but at much lower prices, which will directly impact the purchasing power of Algerian citizens.
'The measure was adopted by competent bodies of the Algerian state and is part of a well-thought-out economic approach aimed at relieving pressure on citizens without affecting the public treasury. Imports, whether direct or individual, are a temporary solution until manufacturing projects are implemented,' he added.
Meghiref asserted that 'according to a study we conducted, the price of a car when imported from China, after taking into account all transportation costs and fees, arrives at the port of Algiers at a price almost identical to that offered by dealers, or perhaps even lower. This is a positive indicator of the effectiveness of the new mechanism.'
Citing a concrete example of the Skoda Karoq, which was previously subject to customs duties of up to DZD 66774337.40 (180 million centimes) as a new vehicle. Under the new mechanism, the duty has now been reduced to only DZD 40064602,44 (108 million centimes), representing a reduction of DZD 26709734,96 (approximately 72 centimes).
If the used car is less than three years old, the customs duty reduction is estimated at DZD 14838741,65 (40 million centimes) compared to the previous value. These figures confirm the extent of the anticipated improvement in the car market.
Maghiref also emphasised that car prices in China are very reasonable, noting that the Skoda Karoq, for example, is sold for €22,000 in Europe, while the same model manufactured in China costs no more than $14,000. This represents a significant difference that benefits Algerian consumers.
The spokesman concluded by confirming that this measure will open the door to sorting between serious and non-serious dealers, adding that 'the process will filter the market and give preference to credible dealers, especially those looking to import world-class cars from China, whether local or international brands manufactured there.'
For his part, economic and financial expert Nabil Djemaa confirmed to Echorouk that reviewing the mechanism for calculating customs duties based on the importing country's invoices, rather than the European reference prices, is a positive step toward greater flexibility in customs transactions and contributes to alleviating the financial burden on citizens, especially those wishing to import cars at reasonable prices.
Djemaa explained that this decision is consistent with previous statements by the President of the Republic, Abdelmadjid Tebboune, who reiterated that 'the citizen is a red line,' making these measures a practical extension of the state's vision to support purchasing power. He added that the expected reductions in customs duties will enable a wide range of citizens to purchase used cars at lower costs, especially those coming from countries with lower prices, such as China, the Middle East, and the United States.
While welcoming the measure, the economic expert stressed the need for customs authorities to be vigilant to avoid any potential manipulation of invoices or inflated discount rates. He recalled that the success of this step depends on strict oversight and close monitoring of the invoices declared upon import.
Djemaa pointed out that adopting original invoices from the importing country will enhance supply diversity and curb inflated prices in the local market. However, he cautioned that car prices will remain linked to other factors, such as shipping costs, the exchange rate of the dinar against foreign currencies, especially the Chinese yuan, and the laws of supply and demand.
He concluded by saying that the new measure will gradually restore confidence in the used car import process and represent a real relief measure for a broad segment of citizens, provided it is implemented firmly and transparently to ensure its credibility and sustainability.
